Legislature(2001 - 2002)
02/21/2002 01:52 PM House FIN
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HOUSE BILL NO. 262
"An Act relating to accounting for and appropriations
of receipts from fees collected by the Department of
Labor and Workforce Development for certain inspections
and for certain plumbing and electrical worker
certificates of fitness; establishing a building safety
account; and providing for an effective date."
Representative Lisa Murkowski, Sponsor, spoke in support of
the legislation. She noted that the legislation was at the
request of the department to eliminate the sizeable backlog
of elevator and boiler inspections.
In the mid-1990s there were five electrical inspectors, two
elevator inspectors, and five boiler/pressure vessel
inspectors to inspect approximately 600 elevators statewide.
Currently there are only two electrical inspectors, one
elevator inspector, and three boiler pressure inspectors to
inspect nearly 900 elevators, with nearly 6,000
boiler/pressure vessels overdue for inspection.
Representative Murkowski explained that revenue collected by
the four additional inspectors would generate enough funds
for the program to pay for itself. She noted that
discussions have occurred regarding the ability of private
industry to provide the services. She concluded that if the
backlog is going to be reduced and the safety addressed
additional inspectors are needed.
Vice-Chair Bunde referred to the fiscal note and questioned
why it is not a net zero.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
explained that the cost of the two boiler inspectors and the
elevator inspectors would be $276 thousand dollars but that
fees collected would only be $235 thousand dollars. The fees
do not cover 100 percent of the costs. The elevator
inspectors would not cover their costs; the mechanical
inspectors do cover their costs.
Vice-Chair Bunde questioned why the fees were not raised to
cover the costs. Representative Murkowski observed that fees
are uniformed, and pointed out that inspections occur in
small remote communities, which cannot sustain the cost. Mr.
Henderson noted that fees were revised to $40 - $75 dollars
per boiler inspections, depending on size. He added that the
entire component would be self-sustaining overtime,
including elevator and boiler inspections.
TAPE HFC 02 - 30, Side A
Mr. Henderson explained that the estimated increase is $25
thousand dollars per year from fees for mechanical
inspections.
Representative Hudson observed that the workforce is being
increased to accomplish more of the inspections, which would
raise revenues from fees.
Mr. Henderson clarified that the fees were increased, but
the fees still do not cover costs. Vice-Chair Bunde
questioned why fees are not sufficient to cover costs. Mr.
Henderson stressed that the intent is to cover costs in the
future.
Representative Lancaster agreed that costs should be
covered. Representative Murkowski acknowledged that there
may need to be an amendment. Representative Harris suggested
that fees would have to be raised.
Mr. Henderson stressed that the component is being reduced
by $363 thousand general fund dollars and $695.5 thousand
dollars in general fund program receipts. These funds are
being replaced with income from the Building Safety Account.
The bill addresses the whole program with the goal of making
it self-sufficient.
Representative John Davies asked for further clarification
of the fiscal note. Mr. Henderson noted that the Division
takes in approximately $1 million dollars a year in program
receipts, but only has authorization to spend $695.0
thousand dollars; the rest is lapsing. Representative Davies
concluded that the Division receives excess receipts already
and is asking for authority to expend them under the new
category.
In response to a question by Representative Croft, Mr.
Henderson clarified that the change in revenues from the
increase in fees is $235.0 thousand dollars.
Representative Lancaster questioned what would happen after
the backlog is addressed.
REBECCA NANCE GAMEZ, DEPUTY DIRECTOR, DEPARTMENT OF LABOR
AND WORKFORCE DEVELOPMENT explained that there is an aging
workforce in the mechanical inspection portion of their
operation and thought that attrition would take care of the
issue once the backlog is handled. She noted that there are
a couple of employees who are slated for retirement but
agreed to stay on to assist in the backlog. She noted that
the positions are difficult to fill.
Representative Whitaker asked how the legislation would
affect the fees. Ms. Gamez observed that fees are
established by regulation. She did not think that fees would
be affected by the legislations.
RICH MASTRIANO, DIVISION OF LABOR AND STANDARDS, DEPARTMENT
OF LABOR AND WORKFORCE DEVELOPMENT explained that the fees
are an averaged based on the entire state. If fees were
raised some outlying areas would be set at a higher rate.
HB 262 was heard and HELD in Committee for further
consideration.
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